Commodity Pricing Options

Commodity Pricing Options

Explaining the Energy Charge

There are two types of charges on your Maine Natural Gas (MNG) Bill; “delivery charge” and “energy charge”. For more information on the delivery charge please see rates and tariff page.

Maine Natural Gas offers two pricing options for the natural gas we supply to you, detailed below. This reflects the cost for MNG to purchase natural gas on your behalf itemized on your bill as the Energy Charge. Energy Charges are a direct pass along to the customer and reflect the purchase price that MNG paid.

Fixed Price Option (FPO):

For customers who elect to have the Fixed Price Option (FPO) they will pay a consistent gas supply price for twelve months which will take effect Sept.1 of each year. This option balances out seasonal peaks and valleys in the price of natural gas. Customers may prefer the FPO if they are sensitive to higher prices during the heating season, and use relatively little natural gas during the rest of the year.
Customers who prefer the FPO must sign up during the enrollment period.*

Index Price Option (IPO):

For all customers who do not select FPO this will be their default supply price. The IPO is based off market pricing, which tends to rise during the heating season and fall during non-heating months. The IPO pricing is adjusted each month based on changes in the commodity price of natural gas and is calculated based on the New York Mercantile Exchange (NYMEX) closing settlement prices.

IPO & FPO Historical Pricing from 2005 through 2019 can be viewed by clicking here.

Current IPO

The IPO for September 2019 is $0.3544

Current FPO

Effective September 1, 2019 the FPO rate for one year will be $.6721

*Customers can select the FPO to “lock-in” the commodity rate component during August for a one-year term.